What are the consequences of a quitclaim deed?

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What are the consequences of a quitclaim deed?

My parents, my husband and I are currently all on the special warranty deed. Only my husband’s name is on the mortgage. But wewant my parents to quitclaim their share of the property to us. However, if my parents quitclaimed the property to us do we still have 50% of the property when they are still alive? When they pass away do we need to pay inheritance tax on their 50% share of the property? If so, will that be calculated at the market value when they pass away?

Asked on October 14, 2010 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

These are questions for a financial planner and an accountant.  Generally, you pay inheritance tax on property you inherit when a person dies. It is also known as estate tax or death tax.  These taxes are calculated on the market value of the property on the date of death.  If your parents quit claim the property while they are alive you not "inheriting" it.  You may, though, be receiving a gift if it is not done properly under the law and have to pay a gift tax.  You may also have other issues if there are siblings involved and they want a share f what would havebeen their portion of the property on the death of your parents.  Get help. Good luck. 


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